0% car loan from Loans Canada
- Rates from 0% - 31.99% (0% for new cars only)
- Borrow $500 - $35,000
- Compare offers from multiple lenders
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When shopping for a new car, you’ll come across advertisements with extremely low interest rates – sometimes even 0% financing offers. But you may be wondering if those offers are too good to be true? Before signing on the dotted line and driving off the lot, read this guide to learn the ins and outs of 0% financing. Plus, find out who is offering 0% financing on cars in Canada among some of the most popular car brands.
In Canada, you’ll often find specific dealerships or car brands offering 0% financing promotional offers. Unfortunately, 0% car finance offers will be much less common from banks and private lenders. That being said, you may find some private lenders, like Loans Canada, that offer 0% financing to those who can meet stringent eligibility requirements.
Check out the table below to see who is offering 0% financing on cars in Canada, or some of the lowest rate financing offers available, from popular car brands:
Car brand | Low rate finance offer | Loan term (months) | Vehicle model |
---|---|---|---|
Mitsubishi | 0% | 36 | Several 2022 & 2023 models |
Hyundai | 0.99% | 24 | 2022 Elantra |
Ford | 0.99% | 72 | 2022 F-150 |
Chevrolet | 0.99% | 72 | 2022 Silverado 1500 LTD |
GMC | 0.99% | 72 | 2022 Sierra 1500 |
Kia | 2.49% | 24 | 2022 Soul |
Toyota | 2.49% | 36 | 2022 Corolla LE |
Chrysler | 2.99% | 96 | 2022 Pacifica |
Dodge | 2.99% | 96 | 2022 Durango |
Jeep | 2.99% | 96 | 2022 Jeep Grand Cherokee |
Tesla | 3.75% | 36 | All 2022 models |
Ram | 3.99% | 96 | 2022 Ram 1500 |
Honda | 4.19% | 84 | All 2022 models |
Nissan | 4.74% | 84 | Several 2022 models |
Mazda | 4.75% | 84 | All 2022 models |
Volkswagen | 4.99% | 60 | Several 2022 models |
Offers last verified in May 2022
The types of financing offers advertised by dealerships will depend on where you live and a number of other factors. So when you’re ready to shop for your new car, check with your local dealerships to find out what financing offers are available at the time.
A 0% financing offer allows you to borrow money to buy a vehicle without having to pay interest and financing fees, which combined is known as the annual percentage rate (APR). This type of financing is mostly offered by dealerships as a way to sell more cars. It is usually reserved for customers who have excellent credit (usually above 700).
Banks or other lending institutions do not typically offer 0% financing on cars because these institutions have nothing to gain by offering them to you. On the other hand, a dealership will be more willing to offer 0% financing because at least you’re driving one of its cars off of the lot and moving inventory.
At first glance, 0% financing on a car is exactly as it appears: You purchase the car at the agreed-on price, and then make monthly payments on the principal of the car with no interest for a set number of months. However, keep these points in mind:
To get a 0% car financing in Canada, you’ll need to do your homework to make sure you get the best deal. Follow these steps to get started:
There are a few red flags you’ll want to keep an eye out for when shopping around for a 0% financing in Canada:
There are a number of alternatives to 0% financing that you might want to consider when shopping for your next vehicle:
There are a number of things you can do to get a better deal on your next vehicle even if you don’t qualify for a 0% car finance offer. These include the following:
You usually won’t be able to get a 0% car loan if you have bad credit. This is because your lender will have to take a big financial risk by offering you a 0% car loan. It will want to make absolutely sure that you pay your loan back in a short amount of time, with zero chance that you’ll default on your payments.
What your bad credit tells your dealer is that you have a history of missing loan payments or defaulting on your financial obligations. The best way to get around this is to improve your credit score so that lenders see you as a reliable customer. Until then, you may end up paying higher interest rates to make up for the risk lenders have to take in giving you money.
Getting a 0% car loan can save you money on interest rates and let you pay your car loan off faster. The main downside of these loans is that they come with strict eligibility requirements and are usually only offered by car dealerships. Find out more about how 0% car loans work, and find out how you can qualify for this type of financing.
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